Puravankara Projects net up at Rs 60 cr

Puravankara Projects net up at Rs 60 cr
The Hindu Business Line, October 29, 2009, Page 17

Our Bureau, Bangalore

Puravankara Projects has posted a net profit to Rs 60.86 crore during the second quarter of the fiscal, against Rs 50.47 crore recorded during the corresponding period last year.

The company attributed the improved performance to the good response to projects launched by subsidiary Provident Housing, sale of land and available flats.

Revenues increased 62 per cent to Rs 226.39 crore (Rs 139.37 crore).

During the quarter, the company sold about eight acres in Kochi for about Rs 145 crore, “as this land was not intended to be developed in the near term,” said Mr Ravi Ramu, Director, Puravankara Projects. The company also acquired 27.7 acres in Coimbatore, though plans for its use have not been finalised.

Mr Ramu said Provident Housing projects at Chennai and Bangalore have received a good response. These projects have units in the price range of Rs 15 lakh to Rs 20 lakh. “During the recession, we neither increased nor decreased our prices. But don’t expect this to continue,” said Mr Ramu.

There were possibilities of real estate prices in Bangalore going up in the next two quarters, he said. “There is a lot of demand for good-quality products that are correctly priced.”

The company, Mr Ramu said, was looking at new launches. “This is an opportune time to actively look at new launches.”

On the company’s plans to raise funds, he said, “We have kept our plans to dilute shareholding at bay. We will go to the market when valuations improve.”

The company said that joint developments would be the way forward for Provident Housing. “We used the slowdown period to seal deals,” said Mr Ramu.

Provident Housing has put its hospitality plans on the back-burner, though it has identified land for the projects from its land bank and tied up with hospitality partners.